IIFL FINANCE 2022-23 Annual Report Analysis

Wed, 12 Jul

IIFL FINANCE has announced its results for the year ended March 2023. Let us have a look at the detailed performance review of the company during FY22-23.

IIFL FINANCE Income Statement Analysis

• Operating income during the year rose 20.8% on a year-on-year (YoY) basis.
• The company's operating profit increased by 16.7% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 60.3% in FY23 as against 62.4% in FY22.
• Depreciation charges increased by 25.4% and finance costs increased by 7.8% YoY, respectively.
• Other income grew by 24.7% YoY.
• Net profit for the year grew by 35.3% YoY.
• Net profit margins during the year grew from 18.9% in FY22 to 21.2% in FY23.

IIFL FINANCE Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	62,877	75,978	20.8%
Other income	Rs m	7,449	9,289	24.7%
Total Revenues	Rs m	70,327	85,267	21.2%
Gross profit	Rs m	39,240	45,812	16.7%
Depreciation	Rs m	1,217	1,526	25.4%
Interest	Rs m	30,113	32,450	7.8%
Profit before tax	Rs m	15,360	21,125	37.5%
Tax	Rs m	3,477	5,050	45.2%
Profit after tax	Rs m	11,883	16,076	35.3%
Gross profit margin	%	62.4	60.3
Effective tax rate	%	22.6	23.9
Net profit margin	%	18.9	21.2

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IIFL FINANCE Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 43 billion as compared to Rs 62 billion in FY22, thereby witnessing an decrease of -31.0%.
• Long-term debt stood at Rs 382 billion as compared to Rs 329 billion during FY22, a growth of 15.9%.
• Current assets rose 11% and stood at Rs 471 billion, while fixed assets rose 73% and stood at Rs 58 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 529 billion as against Rs 456 billion during FY22, thereby witnessing a growth of 16%.

IIFL FINANCE Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	64,496	89,824	39.3
Current Liabilities	Rs m	62,059	42,826	-31.0
Long-term Debt	Rs m	329,443	381,893	15.9
Total Liabilities	Rs m	456,246	528,787	15.9
Current assets	Rs m	422,697	470,907	11.4
Fixed Assets	Rs m	33,374	57,746	73.0
Total Assets	Rs m	456,246	528,787	15.9

IIFL FINANCE Cash Flow Statement Analysis

• IIFL FINANCE's cash flow from operating activities (CFO) during FY23 stood at Rs -49 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -27 billion, an improvement of 174.2% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 51 billion, an improvement of 83% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -26 billion from the Rs 36 billion net cash flows seen during FY22.

IIFL FINANCE Cash Flow Statement 2022-23

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-22	Mar-23
Cash Flow from Operating Activities	Rs m	17,837	-49,406	-
Cash Flow from Investing Activities	Rs m	-9,958	-27,305	-
Cash Flow from Financing Activities	Rs m	27,808	50,900	83.0%
Net Cash Flow	Rs m	35,687	-25,810	-

Current Valuations for IIFL FINANCE

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 42.3, an improvement from the EPS of Rs 31.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 539.9, stands at 12.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.3 times, while the price to sales ratio stands at 2.7 times.
• The company's price to cash flow (P/CF) ratio stood at 8.9 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Sales per share (Unadj.)	Rs	165.6	199.7
TTM Earnings per share	Rs	31.3	42.3
Diluted earnings per share	Rs	31.2	42.2
Price to Cash Flow	x	8.3	8.9
TTM P/E ratio	x	9.1	12.8
Price / Book Value ratio	x	1.8	1.7
Market Cap	Rs m	115,607	156,205
Dividends per share (Unadj.)	Rs	3.5	4.0

Ratio Analysis for IIFL FINANCE

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 11.0x during FY23, from 6.8x during FY22. The current ratio measures the company's ability to pay short-term and long-term obligations.

Interest Coverage Ratio: The company's interest coverage ratio improved and stood at 1.7x during FY23, from 1.5x during FY22. The interest coverage ratio of a company states how easily a company can pay its interest expense on outstanding debt. A higher ratio is preferable.

• Profitability Ratios

Return on Equity (ROE): The ROE for the company declined and down at 17.9% during FY23, from 18.4% during FY23. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

Return on Capital Employed (ROCE): The ROCE for the company declined and down at 11.4% during FY23, from 11.5% during FY22. The ROCE measures the ability of a firm to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

Return on Assets (ROA): The ROA of the company declined and down at 9.2% during FY23, from 9.2% during FY22. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Current ratio	x	6.8	11.0
Debtors’ Days	Days	1	1
Interest coverage	x	1.5	1.7
Debt to equity ratio	x	5.1	4.3
Return on assets	%	9.2	9.2
Return on equity	%	18.4	17.9
Return on capital employed	%	11.5	11.4

To see how IIFL FINANCE has performed over the last 5 years, please visit here.

IIFL FINANCE Share Price Performance

Over the last one year, IIFL FINANCE share price has moved up from Rs 341.6 to Rs 539.9, registering a gain of Rs 198.4 or around 58.1%.

Overall, the S&P BSE SENSEX is up 20.5% over the year.

(To know more, check out historical annual results for IIFL FINANCE and quarterly results for IIFL FINANCE)